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Entries Tagged as 'Technical Analysis'

MACD- A Reliable Technical Indicator

May 15th, 2010 · 20 Comments

Technical analysis is as much an art as it is a science. No one parameter, by itself, will assist us in making our buy/sell decisions. But when you take all the indicators together, it paints a picture that is critical to maximizing our covered call success. One of the simplest and most reliable of these [...]

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Tags: MACD · MACD Histogram · S&P 500 · Technical Analysis · VIX

Stock Option Chains: Open Interest and Volume

December 13th, 2009 · 30 Comments

As covered call writers, we have all looked at option chains. That’s where we determine how much cash will be generated into our accounts when we sell our options. It’s fun! We first inspect the current price of the underlying security (stock or ETF). Then we check out the closest strike prices (I-T-M, A-T-M and [...]

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Tags: Open Interest · Option Volume · Technical Analysis · option chain

The Time Value of Money and Compounding- The Eighth Wonder of the World

October 3rd, 2009 · 22 Comments

A dollar received today is worth more than a dollar received tomorrow. This simple but powerful sentence sums up the concept of the time value of money (TVM). It is true because of the earning capacity of money when it is invested. In chapter one of Cashing in on Covered Calls, I list the reasons why [...]

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Tags: Cashing in on Covered Calls · Technical Analysis · compounding · economic news · future value · internal rate of return · rule of 72 · time value of money

Technical Market Theories:More Tools for the Technical Analyst plus Industry in the Spotlight

August 8th, 2009 · 15 Comments

Chapter 8 in Cashing in on Covered Calls is devoted to technical analysis. This is a method of predicting future stock price movements based on observation of historical stock price movements. We use it to identify trends and for our buy/sell decisions.  The parameters I chose for my system include moving averages, MACD, stochastics and [...]

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Tags: Cashing in on Covered Calls · Industry in the spotlight · Technical Analysis · economic news · technical market theories

Using Moving Averages in Your Buy-Sell Decisions

June 14th, 2009 · 19 Comments

When it’s time to buy a new car we analyze the reliabilty and safety of the automobile. A comparison is made of the price of the car to the value we are receiving. We contrast that value to the worth of other vehicles. At some point, after all the analysis, a decision is made…..”that’s the car I will [...]

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Tags: Cashing in on Covered Calls · NYSE Euronext · Technical Analysis · economic news · moving averages · ticker symbols